Logo

Variety

Advertisers Are Moving Money Back Into TV — and It’s Driving Ad Prices Higher

Jun 17, 2016  •  Post A Comment

“After several years of moving money out of TV ad budgets to experiment with new digital outlets and social media, several big advertisers are spending more on the boob tube — and the result, according to ad buyers and other executives familiar with the pace of this year’s ‘upfront’ negotiations, [is] a series of rate increases that TV has not seen since the end of the last U.S. recession,” Variety reports in an exclusive published today.

The report cites a media buying executive who says consumer goods companies, fast-food chains and drug companies are all among those moving money into the TV upfront.

“Some of the money is coming back from digital spending, and some of it is being moved from TV’s so-called ‘scatter’ market, when advertisers pay for commercials much closer to their air date,” Variety reports. “The money ‘is sourced from different ways, but there’s no doubt it’s back in the upfront,’ this buying executive said.”

The report quotes NBCUniversal CEO Steve Burke saying at a conference this week: “We are having a very strong upfront.” NBC, the report notes, has been pushing for CPM hikes between 11% and 13% in prime time, while CBS is in the 9%-12% range and Fox is at 8.5%-10%. No numbers are given for ABC, but it is said to be in the same general ballpark.

We encourage readers to click on the link to Variety near the top of this story to read the publication’s full analysis.

2 Comments

  1. The result of narrow targeting ,need for frequency , much smaller
    ratings , no prime double digits any more creating demand for reach . With the small numbers of
    award and sports finals the bidding
    Is on . There is a new lower standard
    for ratings .

  2. Under the heading “There’s no such thing as a coincidence” advertisers and their agencies are no dummies. They recognize that in the television viewing during upcoming Fall premier season, 4th Quarter and first half of 2016 will surge as a result of the Presidential campaign, the election, and all the subsequent development. And, notwithstanding the fact that television is far more effective than digital in reaching large audiences.

Leave a Reply to Rick gold Cancel Reply

Email (will not be published)